Chasing debtors and clients for overdue payments and bills is a frustrating task and wastes excessive time and energy. For small businesses, this can be a cause of concern as there are always more important tasks at hand.
Small businesses require healthy cash flow to sustain the business operations at minimal profits or at least break-even. However, sending invoices to avoid handling cash can become a nightmare when the clients do not send their payments on time. Here’s how to collect invoices on time.
How to Collect Invoices on Time?
Set Late Fees and Charges
Initially, to avoid any unnecessary disputes and future payment problems, you can introduce a motivator in your invoice system. This can be a discount and rewarding system for timely payments like a discount on large payments.
Other times, you can introduce the set criteria for late payment charges that will be the additional fees besides the original payment. Hence, due to the fear of paying more unnecessarily, your debtors and clients may respect the payment deadlines.
Release Invoices Promptly
It is possible and usually is the case with many overwhelmed small business owners and workers that they may forget to send out invoices upon receiving. Similarly, the client or debtor may also be unaware or may forget soon near the due date.
You may try to demand the just payment, but the other party may claim that you never sent the invoice on time. Moreover, this can hurt a business as well. So, consider handing out the invoices to the respective clients promptly once you receive them to avoid conflicts.
Upfront Billing and Payment
Notably, you can always go for the option of full upfront billing and payment as you decide to provide services to your client(s). This is the safest way to mitigate the risks of any non-payment clients and investors.
If your clients have no problems with such a demand, you can ensure that they go through testimonials for your services and products. Thus, you can instill confidence in your clients. In such a case, a spotless track record may be of great support.
Discuss the Project/Work Details Regarding Costs
Discuss the need to ensure timely payments with your clients. Let them know how important covering the substantial costs of a project or service is. Furthermore, try engaging your clients and share cost details so that they acknowledge your need for bills and payments upfront or on the due date.
Avoid Aggression, Retain Persistence
If your client or debtor is not answering your calls or messages, avoid aggression and such behavior. But be polite and consistent in your approach every time they ignore you.
Why Choose AWA for Your Transportation Collection Needs?
AWA operates on a contingency fee basis, meaning, if we cannot collect, you owe us nothing. If you have unpaid freight invoices and are not sure what to do next, call 662-892-8591 to speak with one of AWA’s client specialists today or Place a Direct Claim Today
For more information on our agency practices and methods, view our AWA Collection Process Page.
